In an effort to roll back more oversight powers of the Consumer Financial Protection Bureau (CFPB), the White House is nominating a budget official to serve as the watchdog agency’s next director.
According to a report in The Washington Post, Kathy Kraninger was nominated to be the head of the CFPB, replacing acting director Mick Mulvaney. The move is seen in a further step to dismantle the regulations put in place by the Obama administration. Kraninger is a surprise nominee, noted the report, because her resume doesn’t include experience in finance, banking or consumer issues. She does have close ties to Mulvaney, having worked with him at the OMB and for President Donald Trump since the administration’s transition. Kraninger was previously an employee of the Department of Homeland Security, noted the report.
Kraninger’s lack of experience drew criticism from advocacy groups. However, the White House told The Washington Post that she will bring a much-needed fresh perspective and management experience to the agency, which the government said “has been plagued by excessive spending, dysfunctional operations and political agendas.” White House Press Secretary Lindsay Walters went on to say Kraninger would “continue the reforms of the Bureau initiated by Acting Director Mick Mulvaney and ensure the consumers and markets are not harmed by fraudulent actors.” The Consumers Bankers Association expressed support for Kraninger’s nomination saying in a statement by president and CEO Richard Hunt that: “the Bureau has been a political pawn for too long. Ms. Kraninger is an experienced manager, has the necessary budgetary knowledge, and can serve as a steady hand shepherding the Bureau. We look forward to hearing her views on consumer protection during confirmation hearings. CBA continues to support a bipartisan commission to provide a diverse set of opinions, wide range of experience and ensure everyone has a seat at the table when key Bureau policies are being crafted.”
According to the report, Kraninger is widely expected to maintain Mulvaney’s steps to dismantle the power of the CFPB under former director Richard Cordray. She doesn’t believe government intervention is needed to foster robust entrepreneurship in the country, although she does think the government plays a role in stopping the fraudulent activity that could harm the markets and consumers.
Trump is expected to nominate Kraninger this week before the deadline to replace Mulvaney expires. Mulvaney will remain acting director until the Senate nominates Kraninger.